What Is The Development of Human Resources?
In this day and age the human resources department is a main focal point of any companies business plan. Human resources can make or break a company's success. A strong, trustworthy, productive workforce can lead to profit increases for the company therefore giving them more power in terms of gaining consumer confidence which will eventually lead to increased Market share.
This means that the management must be very careful when hiring individuals who are employed by their organization. Today legal action can take place if they discriminate against certain groups of people. These groups include race, gender, gender identity, religion, disability status etc… This all falls under what is called anti-discrimination laws created by Title VII of the Civil Rights Act 1964 .
The original was to prevent employers from treating employees differently based on their religion, sex, or national origin. Title VII has been expanded by later legislation such as The Equal Opportunity Act 1984 and with the Civil Rights Act of 1991 which now prohibits discrimination due to race, color, religion, sex ,or national origin.
Now is it only illegal for employers to discriminate against their employees but also illegal for them not to hire someone under certain circumstances. That includes one needing a work permit and is over the age of 16 (in most states) and can prove they are a legal citizen of this country through providing identification like a social security card or birth certificate. This prevents any companies from hiring individuals who do not meet those guidelines set forth by federal law that all businesses must follow.
How is Human Resource Management Related to Business?
The role of human resource management in the corporate world is one that has been thrust into the spotlight recently, with many arguing that it is no longer an optional practice for businesses to consider. Instead, there are some who believe that it must be considered beyond a luxury and become an expected part of doing business; if only for financial reasons.
As far back as 2001, research showed that companies which did not provide decent packages of benefits were losing out to their competitors by around 3 percent of gross revenue. That may not seem like much but when you calculate how many more clients or customers they could gain from this difference over the course of a year, suddenly the numbers get pretty substantial. A few years later ( 2006) another piece of research was carried out and it concluded that companies which failed to manage their employees effectively were losing as much as 13.5 percent of their gross revenue; this is over 22 times the amount companies who invested in human resource management lost.
This has led many people to conclude that it is no longer a worthwhile idea for business owners to rely on the workers you already have as opposed to recruiting new workers; even if they need specific skills or experience. If you do not address human resource management now, chances are your competitors will and before long, they will take all your customers away from you and leave you with an empty stock room and high levels of debt. This means learning how to invest in creating strategies for managing your workforce so that you can benefit from this huge competitive advantage over your competitors.
In terms of products, companies can sell what they have but there are things that human resource management can offer which are unique to the business world. This is not something you can get from any other kind of organisation so it stands to reason that you should do everything in your power to protect this asset for as long as possible. As well as offering strategies for recruiting and retaining staff, it also offers advice on how to go about rewarding employees who perform exceptionally well.
There are many theories regarding why people work - some believe that it is all down to payment while others believe that motivation comes from a number of different places. There are even studies which seem to indicate that makes little difference when it comes to the satisfaction of a worker. They will be happy if they have certain things in their life which can include anything from being able to provide for a family to having enough free time.
Another benefit is that you can monitor the performance of your employees and get rid of those who are not up to scratch. On average, this process takes around six months but there are some cases where it can take as much as eighteen months or even longer depending on the circumstances. However, if you do not dispose of these workers properly then there is a risk that they will spread toxic behaviour within the rest of your workforce which could bring down productivity in an instant. It would be much cheaper for you to make sure that these individuals leave on good terms instead, especially since it is likely they may work in the same industry in future.
So how can you effectively manage your workforce? The simplest way is to set out a strategy for hiring new workers that you believe will be beneficial to your company. This could include individuals who have worked for your competitors in the past and using the money saved on wages to offer higher wages than anyone else is currently offering. When it comes to retaining staff, one of the best things you can do with help from human resource management is offer attractive bonuses or incentive packages which are aimed at keeping them working hard until retirement age; when they collect their pension pot.
Another key part of human resource management deals with employee development as this helps build loyalty within an organisation as well as allowing skilled employees to pass on their knowledge and expertise to newer members of staff. This strengthens the overall structure and offers a much better chance for growth which is why many businesses now use this method as opposed to simply punishing poor performers.
As you can see, it is advisable to be kinder to your workforce as this will increase their productivity; at least in the short-term. Over time though, they will make more errors because they don't feel like putting in as much effort as they used to whether there is a reward attached or not. It might not always make sense but investing in human resource management does work, even if it takes time before you start seeing results.
What Does Human Resource Management Mean for Employees?
When we think of the concept of human resource management, we often envision a robust and well-oiled company. There will be no hitches in operations and all employees know exactly what to do.
This might appear very idealistic, but it's actually possible for HR professionals to create such an environment within their company, especially if everyone pitches in together. For example, there are ways that you can promote employee satisfaction by keeping them pleased with their jobs , compensation they receive once they've completed their work tasks , career development opportunities , as well as flexibility on how they go about doing things . The idea is that your team members should feel like they own the business they're working for so everything falls under their.
Aside from that, not only should you keep in mind the well-being of your employees, but also their safety. Once again, it's best to ask for volunteers when it comes to risky work tasks. This way, there will be no injuries or accidents at all because everyone will have given their consent ahead of time.
What Is the Historical Development of Human Resource Management?
The HRM system has changed a lot throughout history. Let's consider the historical process together;
Early Human Resource Management (HRM): 1861 – 1990s
Before the 19th century, workers were treated as subservient to employers and their needs were ignored by organizations. However, with the increase in worker's awareness, there was a need for organizations to create systems appropriate for managing employees' concerns; this lead to the development of HRM. The origins of modern day human resource management can be traced back to Frederick Taylor who introduced scientific management and Henry Ford who created Volvo and initiated the moving assembly line which revolutionized how things were done and became part of everyday life.
Early developments at the end of the 19th century
The early years saw a few changes in regard to hiring and employee selection. Organizations' main concern during this time was efficiency; selection became a means to recruit employees capable of completing tasks efficiently and meeting required standards. Companies were looking for ways to make their businesses more profitable and efficient by using scientific notions such as meritocracy which gave rise to psychological testing as a way for organizations to select those who would fit within company culture and achieve individual goals.
In the 1920s, the focus of recruitment shifted from efficiency to a more people-centered approach which was introduced by Elton Mayo. This new outlook led to a rise in employee satisfaction and increased productivity. In addition, during this time job analysis became common practice as it allowed companies to determine the specifications for jobs hence making them easier to fill. The primary concern at this point was meritocracy which continued into the 1950s.
"The 1960s brought about significant changes in personnel management through government intervention and regulation" . Employees' concerns came under consideration at this time due to the introduction of equal employment opportunities and affirmative action which allowed the disabled, women and minorities to be integrated into work places. It is during this time that organizations recognized benefits such as training programs that would improve their employees' skills and knowledge in order for them to remain relevant.
1970s – The influence of psychoanalytical theories
The 1970s saw a shift from a systems approach focusing on a multidimensional structure to a more individualistic perspective known as self-fulfillment theory. This new emphasis on improving an employee's quality of life resulted in the birth of human relations movement. Despite the fact that many organizations failed to implement these changes it served as an eye opener for others who were quick to embrace the concept of "people as the organization's most important resource". In addition to this, organizations implemented psychoanalytical theories as a way to evaluate their employees' needs and determine what organizational changes needed to be made.
The 1980s – An even more people-centered approach
During this time, organizations shifted from focusing on the individual employee to emphasizing teamwork which resulted in an increase in productivity and efficiency. This was also a turning point because it marked the beginning of HRM becoming increasingly concerned with strategic planning that would improve employees' involvement within work environment. The 80s also saw job enlarg emerge as a benefit offered by companies in order to attract and retain employees.
The 1990s – The start of global HRM
"This decade was highly influential in changing the focus of human resource management from just an organizational approach towards showing concern for the entire workforce". Organizations started to see beyond their own borders when developing policies, programs and benefits making them people-centered. With the integration of nationalities came an increase in multiculturalism which led to changes in regard to hiring practices. For example, organizations had to look at employee diversity in regards to gender, race and ethnicity in order to ensure there was no discrimination within work places. Work performance also became a major component when measuring employees' effectiveness; this was evident in the introduction of the balanced scorecard concept. This allowed organizations to determine if their goals were properly aligned with their organization's core values.
The 2000s – The fundamental shift towards employee involvement and participation
This decade marked a fundamental shift in HRM when it comes to employees' involvement within different activities that would improve work environment thus creating an open culture of trust that is vital for success. At this point employees are encouraged to speak up about any concerns they may have while management structure is adapted to fit today's needs. Organizations also recognized the importance of collective bargaining agreements which led to stronger relations between employers and employees resulting in better business decisions being made by both parties. These relationships are also supported by initiatives that have been implemented through different governments around the world which work to improve working conditions and ensure fair treatment of employees.
The future – A worldwide focus on social responsibility
With today's global community employers are facing new challenges in regard to how they manage their workforce due to globalization. Organizations see great value in investing in education, training, technology as well as providing benefits for their employees. According to recent findings "with organizations looking beyond their own borders it is evident that human resource management will continue evolving into a more collaborative approach". This means that organizations will start collaborating with local communities which will give them an opportunity to see first hand how they can support the economy while still maintaining high standards for all of their employees.
The future of HRM is still in the early stages and there is no telling how it will look like in a few years from now. With that being said, one thing remains certain – human resource management will continue to evolve as it has been doing for many years. In order to be successful organizations will need to keep up with the ever changing activities that occur within this industry. This means that they need to stay connected through various social networks and ensure they are engaging in meaningful conversations with their target audience. As sure as day follows night there needs to be a constant flow of information between employees and companies which would mean more work on the employers' end but a better understanding of what employees want and expect from them.
He completed his undergraduate studies at Celal Bayar University, Anadolu University and Istanbul University, and a Master's degree with thesis on Human Resources Management at Yıldız Technical University and Business Management at Beykent University. He is currently writing a doctoral thesis on human resources and consulting businesses on human resources.